Sonoe Sugahara Pinheiro

Mortality Table For the Private Insurance Population

The origin of modern life tables lies in studies conducted by John Graunt and described in his book (1662), although there are some evidences that in ancient Rome there were similar studies. The publication of life tables developed by Edmond Halley (1693) can be considered as the landmark of more elaborate studies on survival models, though. In fact, the first life table based on actuarial concepts was constructed by Milne in 1815. Since then, life tables became a necessary staple to any calculation of insurance nature. Nowadays, the most common problem one faces when dealing with an insurance, besides the rate of return, is the adequate choice of a life table suitable to a given population. Brazil lacks specific life tables for its population and has been using foreign tables, developed for other countries with different cultures and different mortality experience. This work, based on Susep 1998 administrative data, constructs life tables for consumers of life insurance and private pension schemes. A mathematical equation is fitted to the data. This equation has three components: infant mortality, mortality by external causes and mortality by senescence. Confidence intervals are calculated for the mortality rates. Some comparisons of the table so obtained to other tables been used by the insurance market are made.